PARIS -- With one eye on presidential elections two years hence, French Prime Minister Lionel Jospin tapped two political heavyweights in a major cabinet shuffle designed to renew the momentum of his flagging government.

Mr. Jospin's key appointment was former Prime Minister Laurent Fabius to replace Finance Minister Christian Sautter, who resigned after only five months on the job. Mr. Fabius, a onetime rival of Mr. Jospin's in the French Socialist Party, is a pragmatist who appeals both to the party faithful and to...